Taiwan's Strategy after the Framework Agreement with China, Asia Pacific Perspectives

Abstract

The Economic Cooperation Framework Agreement (ECFA) that Taiwan and China signed on June 29 this year is a milestone in relations across the Straits. It normalises economic relations between Taiwan and the Mainland. Up to this point, Taiwan has had discriminatory trade and investment policies towards China under the guise of political-security concerns that severely limited economic engagement across the Straits. These measures meant that Taiwan had effectively cut itself off from participating fully in the East Asian production networks.